Friday, August 15, 2014

What We're Reading ~ Hedge Fund Links 8/15/14

Update on Miura Global's latest activity [ValueWalk]

Pershing Square's latest letter [Scribd]

Latest post by Carl Icahn [Carl Icahn]

Hedge fund branding continues to drive a majority of asset flows [All About Alpha]

A better tactic for hedge fund analysis [AI CIO]

Soros' secrets: buy bubbles, bet big [Irish Times]

SEC threshold for accredited investor likely to increase [COO Connect]

S&P questions viability of hedge fund reinsurer business model [Artemis]

Searching for yield in all the wrong places [HF Intelligence]

Activism has become a marketing strategy [FT]

ValueAct says Valeant doesn't need to buy Allergan [Reuters]

Investors pay for hedge fund illusions [Bloomberg View]

Viking Global Boosts Salix Pharmaceuticals Stake

Andreas Halvorsen's hedge fund firm Viking Global has filed a 13G with the SEC regarding their stake in Salix Pharmaceuticals (SLXP).  Per the filing, Viking now owns 5% of the company with over 3.19 million shares.

They've increased their holdings by 305,850 shares and the filing was made due to activity on August 8th.

We recently highlighted some other portfolio activity from Viking Global as well.

Per Google Finance, Salix Pharmaceuticals is "a specialty pharmaceutical company dedicated to acquiring, developing and commercializing prescription drugs and medical devices used in the treatment of a variety of gastrointestinal disorders, which are those affecting the digestive tract."

Bridger Capital Adds to ChannelAdvisor Position

Recently, we highlighted Bridger Capital's new stake in ChannelAdvisor (ECOM).  Roberto Mignone's firm has just filed an amended 13G with the SEC regarding their position.

Per the filing, Bridger now owns 8.8% of the company with over 2.17 million shares.  They've increased their position by 970,993 shares and the filing was made due to activity on August 5th.  Shares have fallen from $23 recently down to around $15 and they've utilized the dip to add to their stake.

Per Google Finance, ChannelAdvisor is "a provider of software-as-a-service, or SaaS, solutions that enables retailers and manufacturer customers to integrate, manage and optimize their merchandise sales across hundreds of online channels. Through the Company’s platform, the Company enables its customers to connect with new and existing sources of demand for their products, including e-commerce marketplaces, such as eBay, Amazon and Newegg, search engines and comparison shopping websites, such as Google, Microsoft’s Bing, and Nextag, and emerging channels, such as Facebook and Groupon."

Wednesday, August 13, 2014

What We're Reading ~ Analytical Links 8/13/14

Zero to One: Notes on Startups, or How to Build the Future [Peter Thiel]

The Buffett formula - how to get smarter [Farnam Street]

A look at Alstom as a potential sum of the parts play [Value and Opportunity]

Value stocks in market corrections [Brooklyn Investor]

What does sentiment suggest for future returns? [Fat Pitch]

What will happen when companies stop buying back so much stock [Business Insider]

Zillow shares could fall by half [Barrons]

Taking AIG from 'sucks' to 'rocks' [Business Week]

Why you should keep an eye on Sequoia Fund [Asset Builder]

Investors move into cash, bracing for market sell off [IFRE]

The power of shareholder yield [What Works on Wall Street]

Unfortunate realities of the investment business [Wealth of Common Sense]

Buy stock pickers, avoid sector pickers [Morningstar]

Tuesday, August 12, 2014

Eminence Capital Starts World Wrestling Entertainment Stake

Ricky Sandler's hedge fund Eminence Capital has filed a 13G with the SEC revealing a brand new position in World Wrestling Entertainment (WWE).

Per the filing, Eminence now owns 9.6% of the company with over 3.17 million shares.  The filing was made due to activity on July 31st.

WWE shares have been on a rollercoaster thus far this year.  They started the year around $16, skyrocketed up to $31, and have recently settled down just under $14.  A lot of this volatility can be attributed to the hype and results surrounding the launch of the company's new network.

Per Google Finance, World Wrestling Entertainment is "an integrated media and entertainment company. The Company develops content via television, online and at its live events. The Company's operations are centered around four business segments: Live and Televised Entertainment, Consumer Products, Digital Media and WWE Studios. Live and Televised Entertainment segment's revenues consist principally of ticket sales to live events, sales of merchandise at these live events, television rights fees, integrated sponsorships fees, and fees for viewing the Company's pay-per-view and video-on-demand programming."

You can view additional recent portfolio activity from Eminence Capital here.

Glenview Capital Discloses Group 1 Automotive Stake

Larry Robbins' hedge fund firm Glenview Capital has just filed a 13G with the SEC.  They've disclosed that they now own 6.24% of Group 1 Automotive (GPI) with over 1.5 million shares.

This is a newly revealed stake and the filing was made due to activity on July 31st.

For more from this hedge fund, check out Larry Robbins at the Delivering Alpha conference.

Per Google Finance, Group 1 Automotive is "an operator in the automotive retailing industry. Through its operating subsidiaries, it markets and sells a range of automotive products and services, including new and used cars and light trucks; arrange related vehicle financing; service and insurance contracts; provide automotive maintenance and repair services, and sell vehicle part."

Eton Park Capital Starts Armstrong World Industries Position

Eric Mindich's hedge fund firm Eton Park Capital has filed a 13G with the SEC regarding shares of Armstrong World Industries (AWI).  Per the filing, Eton Park now owns 6.69% of the company with over 3.66 million shares.

This is a newly disclosed equity position for the hedge fund and the filing was made due to activity on August 1st.

Eton Park is now the second major hedge fund to recently reveal a stake in the company as Jeff Ubben's ValueAct Capital took an AWI stake as well.

Per Google Finance, Armstrong World Industries is "a global producer of flooring products and ceiling systems for use in the construction and renovation of residential, commercial and institutional buildings. The Company designs, manufactures and sells flooring products (resilient and wood) and ceiling systems (mineral fiber, fiberglass and metal) globally. The Company segments includes: Building Products, Resilient Flooring and Wood Flooring. The Company’s Building Products, Resilient Flooring, Wood Flooring and Cabinets segments sell products for use in the home. Its products are used in new home construction and existing home renovation work. Its products, primarily ceilings and Resilient Flooring, are used in commercial and institutional buildings."

Paulson & Co Boosts NovaCopper & Cobalt International Energy Stakes

John Paulson's hedge fund firm Paulson & Co has filed two 13G's with the SEC.

NovaCopper (NCQ)

First, Paulson's amended 13G on Novacopper (NCQ) indicates that they now own 18.3% of the company with over 11.5 million shares. 

This marks an increase of over 5.59 million shares since the end of the first quarter.  The filing was made due to activity on July 31st.

Per Google Finance, Novacopper is "a base metals exploration company. The Company is engaged in the exploration and development of mineral properties, including the Arctic and Bornite Projects located in Northwest Alaska in the United States of America. Its exploration activities are focused on two deposits in the Ambler district: the Arctic VMS deposit and the Bornite carbonate replacement deposit."

Cobalt International Energy (CIE)

Second, Paulson & Co has filed a 13G regarding shares of Cobalt International Energy (CIE).  Per the filing, the hedge fund firm now owns 10.1% of the company with over 41.8 million shares.

This is an increase of over 14.6 million shares since the end of the first quarter.  The filing was made due to portfolio movement on July 31st.

Per Google Finance, Cobalt International Energy is "oil-focused exploration and production company with a salt prospect inventory in the deepwater of the United States Gulf of Mexico and offshore Angola and Gabon in West Africa. The Company operates its business in two geographic segments: the U.S. Gulf of Mexico and West Africa. The Company’s oil-focused exploration efforts target subsalt Miocene and Inboard Lower Tertiary horizons in the deepwater U.S. Gulf of Mexico."

You can view additional recent portfolio activity from Paulson & Co here.

Larry Robbins Focusing on Companies Deploying Capital

Institutional Investor has released an excerpt of their interview with Glenview Capital's Larry Robbins from the Delivering Alpha Conference.  In it, Robbins talks about how the market will react to the Fed releasing the 'training wheels.'

He says Glenview has been actively focusing on companies actively deploying capital, taking advantage of cheap interest rates, etc.  He likes companies that are "flush with cash, that have significant debt capacity, that are defensive and growing and that are trading at cheap valuations (maybe not as cheap as 2 years ago)."

For more from him, we've posted Robbins' 6 best ideas at the Delivering Alpha conference.

Embedded below is the video of Larry Robbins' interview:

For more from this conference, we've also posted an interview with Maverick Capital's Lee Ainslie.

Monday, August 11, 2014

Lee Ainslie on M&A Boom, Cybersecurity & the VIX

Institutional Investor just released an excerpt from an interview with Maverick Capital's Lee Ainslie from the Delivering Alpha Conference.  In it, Ainslie touches on the M&A boom, cybersecurity, and the low volatility index readings (VIX).

Ainslie says that there could be a bigger level of mergers and acquisitions than in 2007 thanks to large corporate cash balances and the fear that interest rates will increase or the tax inversion loophole will close. 

He also likes to look for secular trends from the top down and then identify specific companies that will benefit from those trends.  One of the biggest trends he's seeing now is network security / cybersecurity, though he doesn't mention any specific names.

Lastly, Ainslie points out that the VIX has seen spikes on a more frequent basis as the years go by.  He argues that the there's a contrast between the threats in the world and the low levels the VIX has been sitting at, which he thinks is not being priced appropriately. 

Embedded below is Institutional Investor's interview with Lee Ainslie:

You can view some of Maverick Capital's portfolio activity here.

Baupost Group Starts Veritiv Position

Seth Klarman's hedge fund firm Baupost Group has filed a 13G with the SEC regarding shares of Veritiv (VRTV).  Per the filing, Baupost now owns 14.06% of the company with 2,249,601 shares.

The filing was made due to activity on July 31st.  Veritiv shares just recently started trading in June.

You can view additional recent portfolio activity from Baupost Group here

Per the company's website, Veritiv is "a North American leader in business-to-business distribution solutions."

12 West Capital Discloses Diana Containerships Position

Joel Ramin's hedge fund firm 12 West Capital has filed 13D with the SEC regarding shares of Diana Containerships (DCIX).  Per the filing, the hedge fund now owns 22.4% of the company with over 16.4 million shares.

This is a newly disclosed position for 12 West and the filing was made due to activity on July 29th. 

The 13D breaks down some of 12 West's recent purchases in the open market in late June at around $2.52 per share and then via a private placement purchase at the end of July at $2.51.

12 West also has previously disclosed a stake in Euroseas.  You can view additional portfolio activity from 12 West Capital here.

ValueAct Capital Takes 21st Century Fox Stake

CNBC's David Faber this morning reported that Jeff Ubben's activist firm ValueAct Capital has taken a stake in 21st Century Fox (FOXA).

Faber reports they have a $1 billion stake in the company and built the position while FOX had submitted a bid for Time Warner (TWX).  During that time, FOX shares noticeably declined.

He also reports that Ubben likes the company's standalone plan as they decided to walk away from the deal, though sees the logical advantages of a tie-up should that happen in the future.  Ubben thinks FOX can earn $2.50 per share in 2016.

Embedded below is the video of Faber's report with the details:

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For more on this firm, head to some of ValueAct's recent portfolio activity here.